Households are experiencing higher energy costs, but there are strategies to lower bills. The current Ofgem price cap stands at £1,755 annually for the average household paying via direct debit, increasing to £1,758 in January. This rise coincides with the colder months when heating usage typically spikes.
To mitigate costs, Ofgem suggests switching to a fixed energy tariff, which locks in rates for a specific duration. According to a comparison by moneysavingexpert.com, the cheapest fixed tariff on the market is over 10% below the current price cap. Alternatively, tracker tariffs adjust rates based on wholesale energy prices.
During the upcoming winter, additional financial support is available, especially for seniors or low-income individuals. Eligible households may receive £150 off their electricity bill through the Warm Home Discount scheme, either applied directly to the energy account or as a voucher for prepayment customers. Pensioners born before September 22, 1959, can also benefit from Winter Fuel Payments up to £300, with higher earners subject to repayment through taxes.
Cold Weather Payments of £25 are issued when temperatures remain at or below 0°C for seven consecutive days. Simple energy-saving practices like turning off standby appliances or not overfilling the kettle can lead to substantial savings. Adjusting the thermostat down by one degree can save around £90 annually.
If struggling with energy bill payments, contacting the supplier promptly for assistance is advised. Suppliers may offer payment plans, breaks, or manageable debt repayment options. Vulnerable customers can enroll in the Priority Services Register for advanced support during emergencies and power cuts.
Sealing draughts around the house can prevent heat loss and enhance comfort. Affordable solutions like draught excluders under doors can be effective. Draught-proofing, estimated to save £85 yearly by the Energy Saving Trust, might also be eligible for assistance through schemes like the Energy Company Obligation for low-income households.